My first foray into 'averaging down' was... memorable
Alright, so I'm new here, finally decided to stop lurking. Been trading for about seven years now, mostly FX, dabbling in a bit of crypto lately. My biggest, most painful lesson came early on, back when I thought I was smarter than the market (spoiler: I wasn't). I'd taken a position on $EURUSD, got it completely wrong, and instead of just cutting my losses like any sane person, I decided to 'average down.' I just kept adding to the losing position, convinced it had to turn around. It didn't. Not for a long, long time, and by the time I finally threw in the towel, the emotional and capital drain was significant. It taught me a healthy respect for managing risk and the sheer arrogance of fighting a trend. Nowadays, if the market doesn't agree with my initial premise, I'm out. My ego can take the hit; my wallet can't.